This property is located in Brentwood. The borrower requested a residential rehab hard money loan to payoff the existing debt and take enough cash out to rehab the property. This single family residence was used as a preschool for a number of years. The school was moved to a different location and the borrower needed funding to rennovate the property, remove playground structures, re-landscape the yard and clean up the interior in order to either sell or rent the property out.
We were able to finance the full request, structuring the cash out as a fund controlled disbursement for the work needing to be done. An initial draw was released at the close of escrow, with additional draws available as the work progresses on a previously agreed to schedule. The work verification is done through a combination of pictures and site visits.
This residential hard money rehab loan is a short term fix meant to improve the property and bring it back into line with the intended single family residential use that is likely to fetch the highest resale or rental price. Prior to closing we introduced the borrower to a conventional loan broker in the area to speak with about his bank financing options and time frames to get to the point where he could obtain bank financing.
Between the short term loan we were able to arrange and the advice of a conventional mortgage broker our client has a game plan for either option he decides to pursue, whether it be the sale of the property or renting it.
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